MAHB to expand some Malaysian airports under its management particularly Penang and Kota Bharu airports

“We can, in fact, leverage our expertise and further boost the development and expansion of Malaysian airports under our management. “We are looking to further expand some of the local airports in Penang and Kota Bharu,” he told a press briefing in Istanbul.

ISTANBUL: Malaysia Airports Holdings Bhd’s (MAHB) aim to be an international player will not mean it will pay less emphasis on the development of smaller airports in Malaysia, according to managing director Datuk Badlisham Ghazali (pic).

The company, which manages 39 airports in the country, is committed to its agreement with the Government to manage and operate the airports.

“We can, in fact, leverage our expertise and further boost the development and expansion of Malaysian airports under our management.

“We are looking to further expand some of the local airports in Penang and Kota Bharu,” he told a press briefing here.

MAHB had completed the acquisition of the remaining 40% stake in the Sabiha Gokcen International Airport (ISG) in Istanbul, one of the two international airports here. Besides Turkey, MAHB also has operations in India.

According to Badlisham, the long-term strategy for the airport operator would be internationalisation.

He said there was demand for airport infrastructure and management in view of the growth in passenger volume world wide.

He added that the priority of the company would be the Asian region because of it is a fast growing air traffic passenger market although MAHB would also like to venture into Europe including eastern Europe, as well as Africa.

On its capital expenditure this year, he said that it could be less than RM4bil judging from the RM4bil capex incurred on KLIA 2.

To a question on a recent circular discouraging Malaysian companies or government-linked companies from buying foreign assets, Badlisham said the purchase of the stake in ISG was approved by the authorities. Furthermore, the acquisition would bring revenue to Malaysia.

The acquisition of ISG would also diversify the revenue stream of the company and enhance future earnings. The group would be exploring all avenues for value creation at ISG which may include divestment, joint ventures as well as listing.

Source: The Star Online | 12 January 2015